The FDI, reaching €13.2 billion, represents 71% of GDP, with €3.5 billion attributed to real estate.
On Wednesday, the Bank of Portugal announced that foreign direct investment in Portugal increased by €13.2 billion last year, of which €3.5 billion was related to property. Thus, the cumulative stock of foreign direct investment accounts for 71% of the country’s annual gross domestic product.
The total value of foreign direct investment (FDI) transactions was 18.9% higher than the €11.1 billion recorded in 2023, “primarily due to investment in the capital of Portuguese entities,” the central bank explained. “FDI transactions also indicate a substantial contribution from property investment, amounting to 3.5 billion euros,” it adds.
European countries made the largest investments in Portugal last year, notably Spain (€3.8 billion), Luxembourg (€3.1 billion), and the Netherlands (€1.4 billion).
While Spain invested the most in the Centre region, the Setúbal Peninsula, the Alentejo, North and West, and Tagus Valley regions, Luxembourg was the main investor in the Autonomous Region of Madeira (33% of the total).
The Netherlands was the largest investor in Greater Lisbon, accounting for 21% of the region’s total investment.
In the meantime, Portugal’s direct investment transactions abroad amounted to €7.2 billion, compared to €5.7 billion in 2023.
This investment was also primarily made in entities resident in European countries, particularly in the Netherlands (€1.8 billion), Spain (€1.1 billion), and Luxembourg (€1.1 billion).
Considering these transactions, at the end of 2024, “the stock of foreign direct investment in Portugal was €200.3 billion, while Portugal’s direct investment abroad stood at €76 billion”, states the Bank of Portugal, which notes that these figures represent 71% and 27% of Portugal’s GDP, respectively.
In terms of distribution across the country, the Greater Lisbon region accounted for the largest proportion of FDI stock, amounting to €106.2 billion, which represents over half (53%).
“This was followed by the North, with €34.6 billion (17.3% of total FDI), and the Algarve, with €19.5 billion (9.7% of total FDI),” the bank states.
LUSA
